The government has made good on an announcement made during Budget 2024’s tabling. This is relating to the removal of the subsidy for poultry chicken, starting from 1st November 2023.
However, the subsidy and ceiling price for grade A, B, and C eggs will be maintained. Agriculture and Food Security minister Mohamad Sabu made the announcement today.
Mohamad announced the subsidy changes at a press conference which was posted on the ministry’s official Facebook.
Subsidy changes effective Nov 1
“The termination of subsidies for chicken takes into account the current supply and price trends, with farm prices and chicken production costs having stabilised. This has contributed to the current market price being below the price ceiling.
“In this regard, the government will ensure that the selling price of chicken remains reasonable,” he said at the press conference.
According to Mohamad, since February 2023, the government has spent RM3.8 billion on subsidies for chicken and eggs.
However, looking at the current situation, the government has decided to maintain the price of eggs, due to the extra cost that consumers will have to pay if the subsidy is removed.
“If the subsidy is removed, then we can expect the price of eggs to increase by about 10 sen per egg.
“Consumers don’t just buy a single egg, but a carton of it. So, then the price increase would actually be around RM3 (per carton) at this point in time,” he said.
During his speech at the press conference, Mohamad also stated that poultry farmers have assured that they will work towards providing a stable supply of eggs.
In Budget 2024’s tabling session, Prime Minister Datuk Seri Anwar Ibrahim had announced that the government had decided to remove price controls on both chicken and eggs to let the market determine their prices.
This is part of the Madani government’s efforts to retarget subsidies, which includes other subsidies as well, such as electricity and diesel subsidies.
Read More: Highlights Of Malaysia Madani Budget 2024
